Private care providers in three English regions make £250m in three years

[Poor Piran]

Private companies operating care services in three key regions of England have reaped over £250 million in profits in just three years, according to a damning analysis by Reclaiming Our Regional Economies.

The report reveals that private equity firms and companies based in tax havens are raking it in, with more than a third of all profits - a staggering £87.7 million - being made by these entities. This has led to concerns that public money is being rapidly siphoned out of the care system and into the pockets of corporate interests, rather than being reinvested to improve services.

The North East, South Yorkshire, and West Midlands regions have seen a total of £256 million in profit generated by private companies providing care services between 2021 and 2024. This includes children's homes, adult social care, and Special Educational Needs (Send) provision.

However, the real question is: where are these profits going? An analysis by Reclaiming Our Regional Economies found that over £45 million was paid out in dividends to shareholders, with a significant proportion of this also being paid to companies owned by private equity firms. Additionally, £33.6 million was paid in interest, which often goes straight to these corporate interests.

The report's authors argue that this is unsustainable and detrimental to the care system as a whole. Frontline care workers are often paid below the living wage, while directors of these companies are earning eye-watering salaries - up to 60 times more than the average worker.

Leah Millthorne, co-author of the report, warns that councils lack transparency when it comes to the financial structures of the companies they contract with. "They have to tick certain boxes, but what those boxes don't consider is anything to do with a provider's parent company or its financial structures or the ways it's making profit."

The report, titled 'Ending Extraction in the UK Care System', calls for greater scrutiny and limits on profits being made from public services. It argues that local authorities should be able to track where their money is going and ensure that it's not lining the pockets of corporate interests.

Rosie Maguire, co-author, adds: "Care should be a public good that strengthens our communities, not a commodity that drains them."

 

[Defeated Donkey]

This is just crazy! £250 million in profits from private companies operating care services over 3 years?! It's like they're siphoning off all the money meant for people who really need it. I mean, frontline care workers are struggling to make ends meet, but these corporate fat cats are raking it in. And what do we get? Dividends and interest payments that just go straight into their pockets! It's not right. We should be making sure our care system is run for the people, not just the profits of a few greedy companies. We need to hold these councils accountable and make sure they're not being taken advantage of. This report is totally spot on – we need to end this extraction in the UK care system once and for all!

 

[Poor]

I'm really bothered by this news . It seems like these private companies are making a killing off our care system, and it's just not right. I mean, £87.7 million in profits in just three years? That's outrageous! And to think most of that is going straight to shareholders' pockets or being paid out as interest... it's like they're siphoning off public money just because they can.

And what really gets my goat is that frontline care workers are getting screwed, often earning below the living wage. Meanwhile, directors of these companies are raking it in - up to 60 times more than average? It's like they own the place!

I think we need to hold these councils accountable for where their money is going and make sure it's not lining the pockets of corporate interests. Transparency is key here. We can't just let companies take advantage of our care system without a fight.

 

[Sim College in the]

I'm so sick of these private companies making all this money off public care services. £250 million in profits over just 3 years is crazy! Meanwhile frontline workers are struggling to make ends meet and getting paid below the living wage. It's like they're sucking the life out of our communities. We need more transparency and limits on what corporate interests can make from our taxes.

 

[Innocent Iguana]

I'm really worried about this, you know? Like, private companies making so much profit from care services is just insane. £250 million in three years is a crazy amount of money! And the fact that most of it is going to shareholders and corporate interests is just not right. It's like, what are we even doing here?

And don't even get me started on frontline care workers being paid below the living wage. Like, how can we expect them to take care of people if they're struggling to make ends meet themselves?

We need more transparency and accountability from councils and private companies. It's just not fair that local authorities don't know where their money is going. We should be able to track our tax dollars, you know?

I think it's time for us to take a closer look at how care services are run in the UK. We need to prioritize people over profits and make sure that care is a public good that benefits everyone, not just corporate interests.

 

[Nasty Nig]

I'm so fed up with these private companies making all this profit off public money ! It's like they're sucking the life out of our care system. I mean, £87.7 million is a huge amount and it's not even clear where most of that cash is going . Are we really just letting corporate interests make decisions for us? The frontline workers are struggling to get paid a living wage, but the directors are raking it in . It's just not right. We need to be able to track where our money is going and ensure it's being used to benefit everyone, not just the profits of a few greedy companies .

 

[Tense Tur]

I'm super concerned about this care system breakdown . These £250 million profits from private companies in just three years is just crazy . It's like they're sucking up all the money and leaving frontline workers to struggle with low wages . I mean, 60 times more than the average worker? That's just not right . And what about all that dividend money being paid out to shareholders ? It's like they're putting profits over people . We need to make sure local authorities can track where their money is going and prevent this extraction from happening again . It's time for a change and making care a public good that strengthens our communities, not drains them #CareNotCommodities #EndExtractionInUK #PublicGoodOverProfits

 

[My First Viki]

£250 million in profits from care services is insane! It's like they're taking care of people as a way to make money . I think it's so unfair that frontline workers are paid below the living wage while directors are making crazy amounts . We need more transparency and limits on how much profit companies can make from public services . It's not right that councils don't know where their money is going because of loopholes in financial structures . We should be investing in care services to improve people's lives, not lining the pockets of corporate interests .

 

[Blissfu]

I'm telling you, this is just too fishy. These private companies are making bank off our tax dollars and it's like they're sucking the life out of our care system. £87.7 million in profits from these corporate interests? That's just crazy talk! And what about all that dividend money going straight to shareholders? It's like they're getting paid to sit on their hands while frontline workers are struggling to make ends meet.

I mean, think about it, the report says directors of these companies are making 60 times more than average workers. That's not just unfair, it's just plain sus. And what really gets my goat is that councils don't have a clue about how much money is being made and where it's going. It's like they're supposed to be asleep at the wheel while corporate interests run amok.

We need to start asking some tough questions here. Where's all this profit money actually going? Is it lining the pockets of fat cats or actually improving services? I don't trust these private companies as far as I can throw 'em.

 

[Black Kung-fu Conne]

man this is crazy private companies making like £87m in just 3 yrs from care services? that's insane! and its all about lining the pockets of corporate interests meanwhile frontline workers are struggling to make ends meet like what even is the point of having a public care system if it's just gonna be taken over by profiteers? they should have to be transparent about where the money is going, you know, so we can actually hold them accountable

 

[Samurai]

I'm getting so done with these private companies raking in all this cash from our care system . £250 million in just three years? That's insane! I mean, who do these shareholders think they're helping out again? The frontline workers are barely scraping by on minimum wage, and the directors are earning like, six figures? It's just not right .

And don't even get me started on the lack of transparency from councils. I mean, what's going on behind those closed doors? Are they really just checking boxes or making sure everything is "tickety-boo"? I doubt it . It's like, how can we trust that our public money is being used for good when it's just getting funneled into corporate pockets?

I need to see some real change here. Let's get these profits under control and make sure our care system is serving the community, not just lining the pockets of the rich and powerful . It's time to take back our public services and make them work for us, not against us .

 

[Viking Mall Ultra]

I'm so done with these private companies making bank off our public care system . £250 million in profits over three years is insane! And what really gets my goat is that most of it is going to shareholders and directors who are raking it in, while frontline workers are barely scraping by . I mean, come on, if you're gonna make money off our vulnerable citizens, at least have the decency to pay them a living wage or something . It's just not right that councils can't even see where their money is going because of all these shady financial structures . We need more transparency and accountability in this system ASAP

 

[Exuberan]

Yooo , just saw this report and I'm low-key shocked. £250 million in profits from care services over 3 years? That's wild . And it's even crazier when you think about the fact that most of those profits are being funneled into shareholders' pockets instead of actually improving services . Like, what's going on here? Are councils just sitting back and letting corporate interests suck up all the public money? Need to know more about these financial structures... seems like a recipe for disaster

 

[The Harlem Gl]

man this is wild £250 million in profits from care services in just 3 yrs and like over half of it is going to private equity firms & corporate interests? it's no wonder frontline workers are struggling to make ends meet on minimum wage lol those directors r raking it in tho, up to 60x more than the average worker that's just not fair

 

[Ashamed Alligator]

omg u guys i cant even believe what im reading so private companies in england are making like £250 million in 3 yrs and most of it goes to shareholders & corporations its like they're stealing from us! and get this - frontline workers r getting paid below the living wage lol who needs a decent salary anyway? but seriously, its not fair that directors are making 60x more than average workers and councils dont even know where their money is going cuz of all the dodgy financial stuff whats up with that?! we need to expose these corporate interests & make them transparent so we can actually fund care services that benefit ppl

 

[Vivacious V]

omg this is crazy , £87.7 million just being made by private equity firms and tax haven companies? that's like, insane , i think its time for some major changes in the way these care services are run, maybe community-led or non-profit stuff would be more sustainable and fair to frontline workers, they deserve so much better than living wages

 

[Space Uni]

I'm like totally torn about this... I mean, £250 million in profits from private companies sounds crazy right? But on the other hand, think about all those frontline care workers getting paid peanuts. Like, isn't it fair to expect them to get a decent wage if they're doing such important work? And what's up with these corporate interests making so much money off public services? It just doesn't seem right... I guess my point is that we need more transparency and accountability, but at the same time, don't we want to incentivize companies to provide good care? It's a tough one...

 

[Claustrophobic Surger]

This is wild . Like £250 million in profits for private companies that provide care services? That's just crazy . And what's even crazier is that like 1/3 of those profits are being siphoned off to shareholders and corporate interests . I mean, frontline care workers are getting paid peanuts while directors are raking it in - up to 60 times more than the average worker ? That's just not right.

And can you believe councils aren't even getting the transparency they need on these financial structures? Like, what's going on behind closed doors? It's like they're hiding something from us . We need to know where our public money is going and make sure it's not lining the pockets of corporate interests .

I'm all about layout and structure, but when it comes to this stuff, I think we need to be more laid out - on how we hold these companies accountable . We need to make sure that care services are being run for people, not just profits . It's time for change!

 

[Horribl]

"Money can't buy happiness but it can buy you a lot of things that might make you think you're happy . Those private companies making profits off care services are just lining their pockets with public money, while frontline workers struggle to make ends meet. It's time for some accountability and transparency in the system! "

 

[Night of the F]

umm yeah I'm not surprised by this . We all know private companies are making bank off public services... but £250 million? That's just crazy talk . What's even crazier is that more than a third of those profits went to shareholders . Like, what's the logic behind that? Don't they want to, you know, improve care services or something?

And don't even get me started on frontline workers being paid below the living wage while directors are making 60 times as much . It's just not right. The report makes some valid points about councils lacking transparency... I mean, how can we trust that public money is going to where it needs to go if we don't know what's going on behind closed doors?